Aldermore comments on RICS survey results

“It is unsurprising, given the upcoming changes to stamp duty on buy-to-let, that there is evidence in the latest RICS survey of a spike in buy-to-let enquiries ahead of the introduction of an additional three per cent stamp duty from April 2016. For our average buy-to-let customer, this would add an additional £5,000 to the transaction costs relating to purchasing a property, therefore we believe it will have a limited impact given the long term view that the majority of landlords take. A large percentage of the business we write relates to re-mortgages, which will not be impacted by the new stamp duty changes.

“Figures from the CML released today, show an 8% increase in annual mortgage lending compared to 2014, and is the highest lending figure since 2008. However, housing supply remains the key issue in the market. Positive steps have been made, such as proposals to give local authorities more control over planning regulations or the government’s Right to Contest which allows the public to identify sites that could be put to better economic use, including housing. Nevertheless, supply side measures are likely to take some time to catch up with high levels of demand.”